Your Colorado Reverse Mortgage Concierge
Frequently Asked Questions
With Plain & Simple Answers
What Is The Age Qualification For A Reverse Mortgage?
62 years old is the minimum age. There is no maximum age. If your spouse is less than 62, you can still qualify. The amount of money you can access will be calculated on the younger spouse.
What If I Have An Existing Home Mortgage ?
Most people use a Reverse Mortgage to pay off their existing mortgage. Your previous loan will be converted to a Reverse Mortgage and you will have all the benefits and protections of the loan program.
How Will The Reverse Mortgage Proceeds Affect My Social Security, Medicare Or Pension Benefits?
Proceeds from a Reverse Mortgage are loan advances, they generally do not affect Social Security, Medicare or Pensions Benefits. As always, consult your tax professional.
What Are The Costs Involved In Originating A Reverse Mortgage? (insider information)
There are three categories of costs involved in a Reverse Mortgage. This is stuff most lenders do not tell you; but I do because you deserve to know.
- Cost obligations: Fees that must be paid. Those include the Upfront mortgage insurance, the title and transfer fees and the appraisal.
- Cost options: The origination fee, most of the title fees, the appraisal, even the Upfront mortgage insurance can be negotiated with your lender. (a great reason to consult with Remarkable Mortgage)
- Out-Of-Pocket Costs. You can pay all the costs out of pocket, you can finance most or all of your costs or you can negotiate with you lender. (always get a 2nd opinion)
Can I Refinance My Reverse Mortgage?
Yes, if you meet the requirements, it’s worth considering.
(I have refinanced many of my Reverse Mortgage clients with a significant benefit at little or no cost.)
- Are you older now than when you took out your loan?
- Has your home increased in value?
- Can you pass a financial test based on the benefit you might get, and the costs involved. (costs are negotiable. Contact me, you might be amazed at what I can do)
- Have you kept up your obligations? (Taxes, Homeowners Insurance, HOA, Credit accounts.)
When Do I Need To Repay My Reverse Mortgage ?
When you sell or have to leave your home. As long as you live in your home, your loan will be in force. If you sell, the Reverse Mortgage will be paid off in the process, like any loan on your property.
If you are no longer able to physically live in your home for more than a year, your loan will become due and payable.
If you pass away, your estate will work with your loan servicer to settle your Reverse Mortgage balance.
Do I Pay Income Tax On My Reverse Mortgage Proceeds?
No. The proceeds from a Reverse Mortgage are categorized as loan advances. Consult your tax adviser.
Can I Deduct The Interest Charged On The Loan Principal?
No & Yes. No, you can’t deduct the interest that accrues on your loan until you pay that interest.
Yes, you can deduct the interest when you payoff the loan, that includes when you refinance your Reverse Mortgage. Consult your tax professional.
What Do I Own? What Do I Owe When My Reverse Mortgage Loan Is Due?
What You Owe: When your Reverse is due, you only owe the balance of your loan. No more, no less, just like any other mortgage loan.
What You Own: You own all the remaining equity after the Reverse is paid.
If you pass away, your heirs will own any equity that remains but they will not owe any loan amount that might be due.
Can I Ever Owe More Than My Home Is Worth?
No. Your Reverse Mortgage is a Non-Recourse loan; your house and FHA are responsible for repayment of the loan. If your loan balance ends up being more than the value of your home, the FHA insurance you paid will cover the difference. Your heirs are not part of the deal, they have no obligation to repay.
Who Has Title To My Home If I Take Out A Reverse Mortgage?
You always have title. Not the bank and not the loan servicer, not even your family. Just you and your spouse (if applicable)
Like any other mortgage loan, you own the home and have title to your property. The mortgage lender has a lien on your property, the lender does not own your property or have any claim on the equity in your home.
Do I Have To Make Payments On My Reverse Mortgage Loan?
No, payments are not required. You can make payments if you wish, but you are not required to pay on your Reverse Mortgage loan as long as you live in your home.
Will My Heirs Have To Sell The House To Pay Off My Reverse Mortgage?
No, they do not have to sell your house. They can payoff the amount owed in cash, or by taking out another mortgage.
If the amount owed is more than the house is worth; your heirs can communicate with HUD and your loan servicer to evaluate their options.
What If My Home Is Worth More Than $679,150? (The FHA loan limit)
I’m glad you asked. There are Jumbo Reverse Mortgage loans for homes valued up to $4,000,000. These Jumbo Reverse Mortgages are Non-recourse loans that do not require mortgage insurance. The Jumbos have similar features and benefits, and they actually cost less to originate that the FHA HECM, Reverse Mortgage. If you have a high value property, let’s talk about your options.
Can I buy My Next Home With A Reverse Mortgage?
Yes! This is one of the least know and largest benefits of a Reverse Mortgage. You can buy you next home using a Reverse Mortgage as your purchase loan.
This is how the HECM 4 Purchase, Reverse Mortgage purchase works.
If you are 71 years old and you want to buy a $200,000 home. You would put down about $106,000 and the rest of the purchase price, ($94,000) would be paid by a Reverse Mortgage purchase loan.
The amount of down payment, or your cash required is based on your age.
@ 71 years old, you need about 53% down. 47% of your purchase would be paid by a Reverse Mortgage loan. You could live payment free for the rest of your days.
There are also Jumbo Reverse Mortgage Purchase programs for high value homes.
Why Do I Make The Effort To Help You Understand The Reverse Mortgage Programs?
I do this for two reasons. First, this is my job, and it’s a great job. I could do anything and I’ve decided to create a Reverse Mortgage company that can help people understand and take advantage of this amazing loan program.
Second, every person who has done a Reverse Mortgage with me walked away from the closing table, happy. And they are still happy that we did this together. Mark Schmidt
About Remarkable Mortgage
Remarkable Mortgage is a Colorado Mortgage Company. We only do Reverse Mortgages.
Our motto is:
A Remarkable Product.
A Remarkable Process.
For Remarkable People.
Our mission is simple:
To help you understand the Reverse Mortgage loan.
This website is devoted to that mission and defined by that motto.
Once you understand the Reverse Mortgage loan, I’d be honored to help you originate a Reverse Mortgage Loan.
Thanks for visiting; Mark Allen Schmidt…Owner & Broker
The other day I ran into honest Abe in Beaver Creek CO. Abe agreed that Reverse Mortgages look like a good thing for the right people in the right situation.